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Energy Saving Certificates

Overview

What is Energy Saving Certificates ?

One of the most important initiative under National Mission on Enhanced Energy Efficiency (NMEEE) is Perform, Achieve & Trade (PAT) mechanism, launched by Bureau of Energy Efficiency (BEE) under Ministry of Power on 4th July, 2012 at New Delhi. PAT is a market-based mechanism to step up and incentivize energy efficiency in large energy-intensive industries.

The scheme covers Designated Consumers (DCs) from energy-intensive sectors. It facilitates the DCs to achieve their legal obligations under Energy Conservation Act, 2001, but also provides them with necessary market-based incentives to over-achieve the targets set for them.

Trading of ESCerts take place at Power Exchanges weekly (on every Tuesday). Bidding timing for ESCerts at Power Exchanges are between 13:00 Hrs to 15:00 Hrs.

ESCerts Mechanism

Target-setting phase, Target-achieve phase, Monitoring & Verification (M & V) phase, Issuance of ESCerts & trading

Market Participants

Market Participants Any Energy Intensive Industry who got notified by MoP under PAT scheme will be eligible to participate in ESCerts segment.

Matching Methodology

Matching methodology is based on double-sided closed bidding auction with Price-Prorata base allocation.

Risk management

Risk management through the requisite margin, including any additional margin as specified for the respective trading segment or the type of contract.